Audit 354977

Title: Note 1 -Basis of presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: HDP Mason Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Note 1 - Basis of presentation The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of HDP Mason Housing Corporation under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of HDP Mason Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of HDP Mason Housing Corporation. For the year ended December 31, 2024, no awards were passed through to subrecipients.

Title: Note 4 - HOME investment partnership program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: HDP Mason Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. San Diego Housing Commission received a direct loan from U.S. Department of Housing and Urban Development under the HOME Investment Partnership Program. The loan agreement was then amended and redirected to HDP Mason Housing Corporation. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. HDP Mason Housing Corporation received no additional loans during the year. The balance of the loan outstanding at December 31, 2024 consists of: Assistance Listing Number Program Name Outstanding Balance at December 31, 2024 14.239 HOME Investment Partnership Program $ 1,864,516